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On Tuesday, an energy customer filed a class action lawsuit against Ambit Energy LP, a Texas-based power reseller and marketer, alleging that the power company deceived customers by falsely promising low electricity rates and free energy in its marketing and then overcharging for services.
Lead plaintiff Michael Urbino filed the class action lawsuit in New Jersey federal court. Urbino alleged that the Texas energy company used deceptive marketing ploys currently permitted by deregulated retail electricity markets in New Jersey and other states to offer customers “life-changing rewards,” “free travel, cruises and getaways,” and “free energy” to get them to switch energy suppliers.
The class action lawsuit alleges that Ambit claims it is able to do this by offering to charge competitive electric rates based on prevailing marketing conditions, but, in reality, rates based on prevailing marketing provisions actually increases the cost of electricity for Ambit’s customers. Urbino also alleges that Ambit deceptively markets its electricity sales by offering either rewards or “free energy,” but in truth, argues Urbino, the rewards are worth much less than the savings and benefits Ambit allegedly promised.
“In fact,” argues the plaintiff in his deceptive marketing class action lawsuit, “Ambit Energy’s pitch is in reality a false and misleading scheme, in which the rates actually charged to consumers are not competitive and bear little relation to prevailing market conditions.” Further, Urbino argues, “As a consequence of this scheme, consumers in New Jersey and across the nation are essentially being scammed out of millions of dollars in exorbitant charges for electricity.”
Urbino alleges that he switched his energy company from another New Jersey based utility company, PSE&G, to Ambit Energy in 2012 based on Ambit’s allegedly deceptive marketing promising substantial savings. However, Urbino claims in his class action lawsuit that his Ambit electricity bill was more than 60 percent more than his PSE&G bill would have been. “No reasonable consumer who knows the truth about the Ambit Energy’s exorbitant rates would choose Ambit Energy as an electricity supplier,” the deceptive marketing class action lawsuit says.
The class action lawsuit alleges that Ambit Energy’s marketing constituted breach of covenant of good faith and fair dealing and unjust enrichment, as well as violated New Jersey’s Consumer Fraud Act. Urbino seeks to represent a Class of current and former Ambit Energy customers with his class action lawsuit. “Plaintiff brings this action to redress the deceptive marketing and billing practices of Ambit Energy,” Urbino says in his class action lawsuit, “which have resulted in thousands of consumers across the nation to pay substantially more for their electricity than they should have paid in the absence of Defendant’s unlawful and misleading scheme.”
Lead plaintiff Michael Urbino is represented by Jonathan Minkove and Lawrence J. Friscia of Friscia & Associates LLC, and Charles J. LaDuca, Bonnie Prober and Michael J. Flannery of Cuneo Gilbert & LaDuca LLP.
The Ambit Energy Deceptive Marketing Class Action Lawsuit is Urbino v. Ambit Energy LP, et al., Case No. 3:14-cv-05184, in the U.S. District Court for the District of New Jersey.
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41 thoughts onAmbit Energy Hit with Deceptive Marketing Class Action Lawsuit
Speaking for us deadbeats of the world. Any company that relies on the US mail system as a way of communicating with its customers is obviously not looking out the the best interest of their customer. If charging a customer more than double what they originally signed up for is your idea of good business you need your head examined. The fact that a customer should have to contact Ambit for the savings and Ambit not offering it automatically is a scam in itself. While I will take the blame for not catching the increase earlier. Its still bad business. If they did not get a response after the supposed original letter was sent , they could have atleast made an attempt to contact to the customer to be sure they are aware of the increase that is about to come. Thats just good business practice Miss Vicki…WAKE UP!!
What’s the basis of this lawsuit? That these deadbeats want Ambit to automatically renew them!!Take some responsibility, people! You have to renew your driver’s license or they’ll suspend your driving privileges! I’ve been with Ambit for about 2 years and all of my 20 customers have renewed to continue their savings! Yes, I had to remind a few of them but they did it! We like our free energy and my customers obviously like the savings! Lawyers love to take your money! They’re the only ones that will benefit from this lawsuit! Wake up, people!
Hello, I Would also like to how to join the Law suit against Ambit they sign me up without my knowledge, i want my money back, I paid $247.77 in February now i,m about to pay $167 to them,so yea i would like my money back please and i want to be done with Ambit nomore money from and cancelle the they service thank you.
First, Ambit is the ONLY ESCO that uses an Independent 3rd party to verify a customer is switching from their incumbent provider. Second Im sure Ambit will return your money when you return the electric you used. Lastly, learn to spell idiot !
I have 3 houses that has been with Ambit for the last two years. I have consistently saved each year- and just renewed on the website they provided for me as their customer. I got the letterSw withno problem. If they can find you to receive your energy- why do you think they can’t find you to renew? Makes no sense. Read your mail people-
has anyone found out how to join in on this lawsuit
I have been on Ambits guaranteed savings plan at both of our homes in NY(since 2011) and PA(since 2014). . In both locations I have saved significantly. I simply call and renew my guarantee every year. Very simple.During the exteme weather last year, my rates were lower. My advise to those complaining…pick up the phone once a year and renew your plan!
Ditto — They have been screwing us too….. They say they sent us a renewall notice on Feb 29, 2012 — to keep the guaranteed \low fixed rate\ rather than the variable rate. Maybe they did-maybe they didn’t, but at least they could send it annually….!!! They WANT us to be sheep….most of us don’t bother looking at the details – we assume these honest-sounding folks are honest. They are overtaken by the lust for power and money….like our politicians….
Please advise how everyone can be involved in this lawsuit, and get our losses recovered 3x. Ambit should be held fully accountable….. I worked my heart out for them, and most of my friends had no interest in joining, so I never got my minimum number to earn anything from this. …my friends were smarter than I…. and I didn’t \get it\…..
Ambit NYSEG
Elect $.1645 $.0578/KWH
Gas $.854 $.49/Therm
John Newark, NY
This is clearly a pyramid scheme hidden behind the front of selling electricity on the retail level. I recommend that anyone who has been burned should file a complaint with the FTC and th BBB in Dallas online. Let’s stop this thievery.
I too have been scammed for 2 years and have paid through the roof rates and want in on the suit! Please let me know how I can get involved. This company has got to be stopped from stealing from people!
I Agree with you Sarah!
How can we be included in this lawsuit??? I’ve had the SAME problem and I feel so helpless.
do you know how to join in on this lawsuit